After the Apple released iPhone 8, their stock went very low due to the poor sales. Is it right time for me to buy Apple Stocks now? If so, how much should I buy? I have around $100K which I am looking for investment opportunity.

I never bought any stock before although I did some research. All i did it before is for Mutual Funds. Where is the best place to buy the Apple stock? What is the procedure? Should I buy via Vanguard? I feel I seriously need some guidance.

After the Apple released iPhone 8, their stock went very low due to the poor sales. Is it right time for me to buy Apple Stocks now? If so, how much should I buy? I have around $100K which I am looking for investment opportunity.

I never bought any stock before although I did some research. All i did it before is for Mutual Funds. Where is the best place to buy the Apple stock? What is the procedure? Should I buy via Vanguard? I feel I seriously need some guidance.

After the Apple released iPhone 8, their stock went very low due to the poor sales. Is it right time for me to buy Apple Stocks now? If so, how much should I buy? I have around $100K which I am looking for investment opportunity.

I never bought any stock before although I did some research. All i did it before is for Mutual Funds. Where is the best place to buy the Apple stock? What is the procedure? Should I buy via Vanguard? I feel I seriously need some guidance.

Thank you so much.

The smartest people in finance try to get the Apple share price right. They have the best advice, read all the latest industry research, talk to management frequently, send people into stores to find out what is going on, etc. etc.

Why do you think you can beat them?

If you want to spend say $2k on this, then fine, it's a gamble. Just like going to the casino at Las Vegas (although your odds are somewhat better, on average). Don't confuse success (or failure) with either skill or a good investment policy, though.

And just like the casino at LV, don't gamble more than you can afford to lose.

Betting a lot of money on one stock is gambling, nothing else. Somewhat better than going to the casino. If I were to buy stocks, I would buy at least 20 of them and at that point you're better off with a Total Market index fund anyways. Too much volatility in one stock. Buy the haystack, not the needle.

Thank you all. These are very valuable and wise advices. This is the reason why I love you guys and the site so much. I really appreciate it.

I listened to you and withdrew my buying APPL stock idea.

One more question:

I have had $150K in VTSAX and $70K in VTIAX since March 2017. They are growing very well. Fingers are crossed.

Should I split the additional $100K into VTSAX and VTIAX 60% vs. 40% as you mentioned diversity is the key?

Can I sell part of them at any point of my life if I need these funds for life unforeseen emergency? What is the tax consequence as they are in my taxable account?

Again, thank you!

maxgrowth,

You should set aside a chunk of the money as an emergency fund, and stick it in a savings account or money market fund. I think there's general agreement here that an amount equal to six months of expenses would be the appropriate amount to set aside. Yes, if you have your emergency fund invested in your taxable brokerage account, you would be able to take it out in the event of an emergency; but it's quite possible circumstances would force you to sell when the market is low. Better to keep your emergency fund un-invested.

catdude |
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"I yield to the gentleman for a few feeble remarks." (Congressman Thaddeus Stevens)

Thank you all. These are very valuable and wise advices. This is the reason why I love you guys and the site so much. I really appreciate it.

I listened to you and withdrew my buying APPL stock idea.

One more question:

I have had $150K in VTSAX and $70K in VTIAX since March 2017. They are growing very well. Fingers are crossed.

Should I split the additional $100K into VTSAX and VTIAX 60% vs. 40% as you mentioned diversity is the key?

Can I sell part of them at any point of my life if I need these funds for life unforeseen emergency? What is the tax consequence as they are in my taxable account?

Again, thank you!

Hi Maxgrowth!

I would say that your question is difficult to answer with the info provided. Some people should have a dedicated emergency fund sitting in cash or something close to cash while others do not need a dedicated emergency fund. It depends on their circumstances. I checked some of your old posts, but didn't see any that followed the traditional Boglehead format for asking for investment advice. This format "forces" you to provide the critical info that your fellow Bogleheads need to give you the best advice. Here's a link to a post with the format: viewtopic.php?t=6212

Thank you all. These are very valuable and wise advices. This is the reason why I love you guys and the site so much. I really appreciate it.

I listened to you and withdrew my buying APPL stock idea.

One more question:

I have had $150K in VTSAX and $70K in VTIAX since March 2017. They are growing very well. Fingers are crossed.

Should I split the additional $100K into VTSAX and VTIAX 60% vs. 40% as you mentioned diversity is the key?

Can I sell part of them at any point of my life if I need these funds for life unforeseen emergency? What is the tax consequence as they are in my taxable account?

Again, thank you!

But to answer your question about emergencies: yes, you can sell any security in your taxable accounts for life's unforeseen emergencies. The tax consequences are that if the security has increased in value since you bought it, you owe taxes on the gains. For instance, if you purchase $100,000 of mutual fund ABC and then the price on ABC increases 10%, at which time you sell it, you owe taxes on the $10,000 capital gain. If you've held the shares for less than a year, you owe the tax at your marginal tax bracket rate. So if you're in the 25% federal bracket, you've got to pay $2,500 in taxes. If you've held the shares for over a year, you will pay the long term capital gain rate which is 15% for most people. In our example, $1,500 in taxes.

None of this though addresses whether it's a good idea for you to invest that $100,000 in stock mutual funds. For that, we really need more info from you as I mentioned in the prior post.

I own 300+ shares of AAPL directly.
My reasons:
1. I see it as a duopoly with Samsung for the entire smartphone business, and I don't think Apple users are inclined to switch,
so it's more like a monopoly on what is basically a necessity product to most people.

2. It has a P/E of 18, about the same as the entire S&P500.

3. They have a huge balance sheet.

(I will avoid the questions of whether it is proper to own individual stocks or whether owning individual stocks is appropriate for your personal situation. I don't think you are asking that from reading your post, so I didn't want to be presumptuous.)

For the record, I have owned a significant amount of AAPL for several years now. I actually started a thread here about whether I should hold on to my AAPL stock about a year ago. I decided to keep it.